This article will introduce you to the most popular cryptocurrency indicators and how to use them to make profits.

The difference between technical analysis (TA) and fundamental analysis (FA)
We have discussed Fundamental Analysis (FA) before and agreed that in the cryptocurrency markets, Fundamental Analysis (FA) provides a more comprehensive understanding of each currency/token. However, for short-term (relatively) profits, traders prefer Technical Analysis (TA) over Fundamental Analysis (FA) despite its limitations (lack of historical data, high dominance of Bitcoin, etc.).

The main difference between these two strategies is the scope of evaluation. Fundamental analysis takes into account everything that affects the intrinsic value of an asset, while technical analysis mainly relies on charts, patterns, and trends to predict future performance. In short, fundamental analysis consists of qualitative and quantitative research, but technical analysis only requires quantitative analysis.

Seven assumptions and principles for technical analysis
Technical analysis theory is based on the following three fundamental assumptions:

Assumption #1: The market discounts everything.

This assumption highlights the difference in the beliefs of technical analysts. Instead of exhausting themselves with fundamental analysis, fans of technical analysis closely monitor prices as a product of all relevant information. That is, the price of the stock naturally reflects the quality of financial data, management quality, etc. And by applying this to cryptocurrencies, prices should contain strong information about adoption rates, control, service, community, fragmentation difficulty/release rate.

Assumption #2: The price always moves in trends.

Prices remain the crucial factor for technical analysis regardless of any time frame. Beginners may find themselves overwhelmed by price charts and the many lines that appear on the screen. Believe it or not, we've all been through it. Once you get used to it, you'll see a constant trend because prices must move in one direction once they appear.

Assumption #3: History repeats itself.

Some claim that this is the most important assumption for technical analysis, where psychological, emotional, and rational factors play a role. If the situation includes the same factors and conditions as in the past, we can expect the same result. Even if we do not do it personally, the majority will create similar sentiments in the market and lead to similar trading behavior.

In addition to these introductory principles (yes, we need to accept them as a fact without evidence), there are some other general principles formulated by market participants over the years, namely:

Principle #1: The likely continuation of a trend is more probable than its reversal.

Let's consider this a continuation of assumption #2. Since prices always move in the same direction, identifying the exact changing turning points seems attractive as they represent the best opportunities to maximize profits. However, we advise you to take full advantage of speculative trading and swing trading, allowing you to easily achieve profits in the direction.

Principle #2: The market fluctuates between expansion and contraction.

There are usually two types of market trends: single trends (upward/downward) or sideways trends. Usually, strategies suitable for single trends will not work in sideways trends and vice versa. The newly released Gate products are considered